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12. Moiz Limited produces three products from a single raw material that is limited in supply. Product for the period 7 are as follows:
12. Moiz Limited produces three products from a single raw material that is limited in supply. Product for the period 7 are as follows: Maximum demand (units) Product-R 1,000 Product-S 2,400 Optimum planned production 720 Unit contribution Rs. 900 Rs. 960 Raw Material cost per unit (Rs. 100 per kg) Rs. 250 Rs. 300 Product-T 2,800 2,800 Rs. 590 Rs. 150 The planned production optimizes the use of the 6,000 kg of raw material that is available from Moiz Limited normal supplier at the price Rs. 100 per kg. However, a new supplier has been found that is prepared to supply a further 1,000kg of the material. What is the maximum price that Moiz Limited should be prepared to pay for the additional 1,000 kg of the material? A Rs.420,0000 B Rs.448,000 C Rs.460,000 D Rs.493,000 Reference: Pricing Decisions and Pricing Strategies-Demand based pricing
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